HONG KONG, Aug. 26, 2014 (GLOBE NEWSWIRE) -- Bonso Electronics International, Inc. (Nasdaq:BNSO), a designer and manufacturer of sensor based products, reported its financial results for the fiscal year ended March 31, 2014.
The company reported a net loss of $0.22 million or $0.04 basic and diluted loss per share, and a comprehensive income of $0.04 million for the fiscal year ended March 31, 2014. Net sales for the fiscal year ended March 31, 2014 increased 3.0% to $31.31 million from $30.39 million for the fiscal year ended March 31, 2013.
Anthony So, the Chief Executive Officer of Bonso, stated, "We are pleased that revenue increased over the prior year and with the reduction in our net loss from $0.76 million for the fiscal year ended March 31, 2013, to $0.22 million for the fiscal year ended March 31, 2014. We were able to decrease our loss in spite of the fact that our operations in China continue to be affected by inflation, especially increased labor costs. The minimum wage for workers has doubled in the last five years as the result of government required increases in the minimum wage. Our strategy to improve our financial performance is to eliminate or reduce sales of our low profit margin products and to focus our skill and resources in higher margin products including high precision industrial electronic scales."
Mr. So said that, "We completed moving all of our production processes to our new factory in February 2014 in order to reduce our labor costs. Also, the old factory is rented out to generate extra rental income to the Company. We believe that our strategy and these moves will enable us to return to profitability in the long run."
About Bonso Electronics
Bonso Electronics designs, develops, manufactures, assembles and markets a comprehensive line of electronic scales, weighing instruments, health care products and pet electronics products. Bonso products are manufactured in the People's Republic of China for customers primarily located in North America and Europe. Company services include product design and prototyping, production tooling, procurement of components, total quality management, and just-in-time delivery. Bonso also independently designs and develops electronic products for private label markets. For further information, visit the company's web site at http://www.bonso.com.
This news release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward looking statements may be identified by such words or phrases as ``should,'' ``intends,'' ``is subject to,'' ``expects,'' ``will,'' ``continue,'' ``anticipate,'' ``estimated,'' ``projected,'' ``may,'' `` I or we believe,'' ``future prospects,'' "our strategy" or similar expressions. Forward-looking statements made in this press release, which relate to the reduction of losses and a positive impact upon our future operations as a result of the sale of assets involve known and unknown risks and uncertainties that may cause the actual results to differ materially from those expected and stated in this announcement. We undertake no obligation to update "forward-looking" statements.
-- Tables to Follow –
| Consolidated Balance Sheets | ||
| (Expressed in United States Dollars) | ||
| March 31 | ||
|
2013 $ in thousands |
2014 $ in thousands |
|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 1,140 | 116 |
| Fixed deposits maturing over three months | 1,014 | 1,049 |
| Trade receivables, net | 2,759 | 2,480 |
| Other receivables, deposits and prepayments | 1,615 | 1,782 |
| Receivable from affiliated party | -- | 166 |
| Inventories | 5,460 | 7,545 |
| Financial instruments at fair value | 54 | -- |
| Income tax recoverable | 1,740 | 1,739 |
| Total current assets | 13,782 | 14,877 |
| Investment in life insurance contract | 127 | 131 |
| Deposits - non current assets | 288 | 293 |
| Property, plant and equipment | ||
| Buildings | 13,704 | 14,339 |
| Construction-in-progress | 2,616 | 3,183 |
| Plant and machinery | 21,565 | 11,276 |
| Furniture, fixtures and equipment | 3,521 | 1,170 |
| Motor vehicles | 444 | 589 |
| 41,850 | 30,557 | |
| Less: accumulated depreciation and impairment | (33,551) | (18,105) |
| Property, plant and equipment, net | 8,299 | 12,452 |
| Intangible assets, net | 4,590 | 4,387 |
| Financial instruments at fair value - non current portion | 37 | -- |
| Total assets | 27,123 | 32,140 |
| Liabilities and stockholders' equity | ||
| Current liabilities | ||
| Bank overdrafts - secured | 180 | 630 |
| Notes payable - secured | 2,276 | 2,527 |
| Accounts payable | 7,793 | 10,413 |
| Accrued charges and deposits | 2,329 | 2,597 |
| Income tax liabilities | 7 | 7 |
| Payable to affiliated party | -- | 10 |
| Short-term bank loans - secured | 1,357 | 2,320 |
| Financial instruments at fair value | -- | 119 |
| Current portion of capital lease obligations | -- | 23 |
| Total current liabilities | 13,942 | 18,646 |
| Financial instruments at fair value - non current portion | -- | 208 |
| Capital lease obligations - non current portion | -- | 69 |
| Income tax liabilities | 2,595 | 2,595 |
| Commitments and contingent liabilities | ||
| Stockholders' equity | ||
| Common stock par value $0.003 per share | ||
| - authorized shares - 23,333,334 | ||
| - issued shares: 2013 and 2014 - 5,577,639, | 17 | 17 |
| - outstanding shares: 2013 and 2014 - 5,246,903 | ||
| Additional paid-in capital | 21,765 | 21,765 |
| Treasury stock at cost: 2013 and 2014 - 330,736 shares | (1,462) | (1,462) |
| Accumulated deficit | (12,588) | (12,809) |
| Accumulated other comprehensive income | 2,854 | 3,111 |
| 10,586 | 10,622 | |
| Total liabilities and stockholders' equity | 27,123 | 32,140 |
| Consolidated Statements of Operations and Comprehensive (Loss) / Income | ||
| (Expressed in United States Dollars) | ||
| Year ended March 31, | ||
| 2013 | 2014 | |
| $ in thousands | $ in thousands | |
| Net sales | 30,386 | 31,305 |
| Cost of sales | (25,263) | (28,631) |
| Gross profit | 5,123 | 2,674 |
| Selling expenses | (268) | (389) |
| Salaries and related costs | (2,627) | (2,983) |
| Research and development expenses | (396) | (366) |
| Administration and general expenses | (2,402) | (2,964) |
| Other income | 165 | 728 |
| Gain from liquidation of subsidiary | -- | -- |
| Gain on disposal of property plant and equipment | 2 | 3,595 |
| (Loss) / profit from operations | (403) | 295 |
| Interest income | 7 | 64 |
| Interest expense | (68) | (136) |
| Foreign exchange loss | (261) | (444) |
| Loss before income taxes | (725) | (221) |
| Income tax expense | (29) | -- |
| Net loss | (754) | (221) |
| Other comprehensive income, net of tax: | ||
| Foreign currency translation adjustments, net of tax | 62 | 257 |
| Comprehensive (loss) / income | (692) | 36 |
| Weighted average number of shares outstanding -- | 5,246,903 | 5,246,903 |
| basic and diluted | ||
| Net loss per share - basic and diluted | (0.14) | (0.04) |
The diluted net loss per share was the same as the basic net loss per share for the fiscal year ended Mar 31, 2013 and 2014 as all potential ordinary shares including the stock options and warrants are anti-dilutive and are therefore excluded from the computation of diluted net loss per share.